Michigan Property & Casualty Insurance Exam |
Practice Test Questions with (105 Terms) All
Answered & Correctly Defined - 2026 | 2027
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Practice questions for this set
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a person or business temporarily in possession of property entrusted to
them by others
Choose an answer
1 Risk 2 Bailee
3 Avoidance 4 Exposure
Don't know?
Terms in this set (105)
, Risk The possibility that a loss will occur
Speculative Risk Chance of loss or gain
Pure Risk only the possibility of loss
Peril cause of loss
Exposure The potential for accidents and other losses
Direct Loss Loss that is a direct result of a peril, such as fire.
Indirect Loss Loss that is a result or consequence of a direct
loss
Moral Hazard Arise from a person's character (dishonesty)
Morale Hazard A condition of carelessness or indifference that
increases the frequency or severity of loss.
Physical Hazard a physical condition that increases the frequency
or severity of loss
Sharing risk Two or more individuals share risk
transfer risk The purpose of insurance
Practice Test Questions with (105 Terms) All
Answered & Correctly Defined - 2026 | 2027
(Rated A+)
Save
Practice questions for this set
Learn 1 /7 Study with Learn
a person or business temporarily in possession of property entrusted to
them by others
Choose an answer
1 Risk 2 Bailee
3 Avoidance 4 Exposure
Don't know?
Terms in this set (105)
, Risk The possibility that a loss will occur
Speculative Risk Chance of loss or gain
Pure Risk only the possibility of loss
Peril cause of loss
Exposure The potential for accidents and other losses
Direct Loss Loss that is a direct result of a peril, such as fire.
Indirect Loss Loss that is a result or consequence of a direct
loss
Moral Hazard Arise from a person's character (dishonesty)
Morale Hazard A condition of carelessness or indifference that
increases the frequency or severity of loss.
Physical Hazard a physical condition that increases the frequency
or severity of loss
Sharing risk Two or more individuals share risk
transfer risk The purpose of insurance
